Chinese state-controlled oil firm PetroChina's first-half output increased by 2.5pc to 3.95mn b/d of oil equivalent, driven mainly by its gas output growth amid a minimal increase in crude production.
PetroChina's ageing oil fields continued to hold back its domestic crude output growth, which was 0.5pc higher from a year earlier in the first half to 2.26mn b/d. Its overseas output also recorded a slight fall of 0.9pc to 310,000 b/d. Total gas output rose by 7pc to 8.3bn ft³/d (235mn m³/d) in the first half, with overseas production up by 28pc to 359mn ft³/d.
The company focused its first-half upstream capital expenditure (capex) on developing shale gas rather than crude output at its ageing fields. Liquid output at it mainstay Daqing oil field contains 90pc of water with only 10pc as oil, according to technical experts, making it economically unviable to be a focus of capex. PetroChina's upstream focus for crude output will continue to be on overseas projects including Iraq's Rumaila and Halfaya oil fields, along with the MPE3 project in Venezuela.
Slowing demand for diesel and chemical products saw PetroChina's crude throughput at its refineries in the first half only come in 0.2pc higher from a year earlier at 2.76mn b/d. It reduced diesel output by 0.8pc to 1.2mn b/d.
Profit for PetroChina in the first half rose by 4pc from a year earlier to 68bn yuan ($11bn) aided by its refining and marketing operations. Refining operating profit was Yn4.4bn compared with a loss of Yn7.8bn a year earlier. Marketing operating profit, which mainly comprised sales of oil and chemical products, rose by 137pc to Yn8.15bn.
nm/rjd
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